Donald Trump, in the course of his Asia trip, encountered counterpart of South Korea, President Lee Jae-Myung, to bring forward together talks on an enormous 350 billion dollars investment package in the United States. Gyeongju was the city where the meeting took place and the subjects were the enlargement of collaboration in the fields of autos, energy, and shipbuilding. The two men delivered the message of the initiative as a win-win partnership that would not only allow for more manufacturing but also contribute to the overall regional economic security. The complete hospitality of the talks was underlined by such ceremonial gestures as the presentation of gold gifts from Seoul.
2. Tariff Reductions and Trade Barriers Under Review
establishing the tariff issue concerning the South Korean automotive exports to the U.S. was one of the main matters of the negotiations. The South Korean side demanded equal treatment with Japanese and European manufacturers which, in their case, the import tariff was only 15%. Progress has been made, however, the deal is still subject to both parties’ disagreements about the investment terms, i.e., direct funding versus long-term loans, very carefully. Analysts have pointed out that South Korea is maneuvering to keep its won reserves intact and also to negotiate a sharing of the profits that is just.
3. Strategic and Global Implications
In case the trade package is finalized, it will probably dramatically change the relations between the U.S. and Korea for the next ten years. The agreement would greatly connect the supply chains, bring in advanced manufacturing jobs, and strengthen the U.S.’s strategic position in the Asia-Pacific. To South Korea, it means diversification of the economy and balancing of its geopolitics through the regional conflicts. While negotiations are still going on, the global markets are observing with interest the extent to which political ceremony will result in tangible economic reform. click here for the source
